I’ve had a lot of folks ask me about my thoughts on the market “slowing down” and where I predict it’s headed… so I’ll try to keep this short!
There are a few factors I like to keep in mind when I predict the near future: I compare the buyer demand over the last year vs buyer demand pre-pandemic. I’m also looking at the increase in sales prices from the beginning of this year, to now.
The number of properties sold in Atlanta between 2019-2020 increased by 7.5% year over year. A few years before, the number of properties that were selling actually decreased year over year, equating to market activity going down/staying around the same between the years leading up to the pandemic. While transactions have slowed down during the most recent months of 2021 vs the same period of 2020, this doesn’t mean the market is cooling. I equate it to there being less homes available for buyers to purchase.
Prices have clearly gone way up since last year and will continue to rise. But, rising prices don’t mean there will be a crash. Today most folks in Atlanta can afford the homes they own, and their loans are great (also, foreclosure rates just hit a 22-year low). The market may soften or flatten a little bit next year, but I expect home prices to continue to rise – just not at the rate they have been (20%+).
If you’re thinking about making a move, the time to buy in my opinion is now. Next year prices will likely rise and rates will go up. This means the same homes will be more expensive to purchase.